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U.S. holiday shoppers spend record $126 billion online

FILE PHOTO: Shoppers walk through the King of Prussia Mall, United States' largest retail shopping space, in King of Prussia, Pennsylvania, U.S., December 8, 2018. REUTERS/Mark Makela

By Melissa Fares

(Reuters) – U.S. shoppers spent a record $126 billion on online shopping during the 2018 holiday season, taking advantage of early discounts on Amazon.com and other websites and with more people using smartphones to place their orders, Adobe Analytics said on Tuesday.

Adobe, which collects its data by measuring 80 percent of all online transactions from the top 100 U.S. web retailers, said the amount was 16.5 percent higher than last year’s total.

Mobile platforms made up 51 percent of traffic to retail websites during the November-December period and were responsible for nearly a third of all online spending.

Online shoppers spent $3.7 billion on Thanksgiving and $6.2 billion on Black Friday, the day after Thanksgiving.

Cyber Monday the Monday after the Thanksgiving holiday — was the biggest U.S. online shopping day ever, with $7.9 billion spent.

Top-selling items online were L.O.L. Surprise Fingerlings toys; Take-Two Interactive Software’s video game Red Dead Redemption 2; Nintendo’s Switch console; streaming devices; and Dell and Apple laptops, Adobe said.

Consumers spent an average 40 percent more per day during the three weeks after Cyber Monday than in the first three weeks of the season, Adobe said. Sales continued to grow until Dec. 17.

While the online sales figures showed how low U.S. unemployment rates and rising wages boosted consumer confidence during the holiday season, department stores continue to struggle.

Further, consumer confidence in 2019 is seen as likely to be strained by rising U.S. interest rates, the ongoing trade dispute with China, market volatility due to concerns over global growth and political deadlock in Washington.

Macy’s Inc shares plunged 18 percent on Thursday after the department store chain slashed its full-year profit and sales forecast on the back of an anemic holiday season.

Kohl’s Corp reported similarly muted comparable sales growth for the holidays, sending its shares down as much as 9 percent on Thursday. Shares of Target Corp were down nearly 4 percent even after the retailer posted relatively strong holiday sales growth of nearly 6 percent on Thursday.

Overall sales for the 2018 U.S. holiday shopping season rose 5.1 percent to over $850 billion, hitting a six-year high, as shoppers were encouraged by early discounts, according to a Mastercard report in late December.

(Reporting by Melissa Fares in New York; Editing by Frances Kerry)

Deals lure U.S. Black Friday shoppers, biggest sales gains online

A large crowd of people shop during a Black Friday sales event at Macy's flagship store on 34th St. in New York City, U.S., November 22, 2018. REUTERS/Stephanie Keith

By Nandita Bose and Chriss Swaney

NEW YORK/PITTSBURGH (Reuters) – U.S. shoppers formed long lines at store checkout counters on Black Friday to snap up deep discounts on clothing and electronics, offering evidence that a healthy economy and rising wages are translating into stronger consumer spending at the start of retailers’ make-or-break holiday season.

“I am spending more, the mood generally is more upbeat,” said Sharon Neidert, 57, visiting New York City from Ohio. “My daughter moved out this year so I have more disposable income,” said Neidert, a manager at a software company.

People shop during the Black Friday sales shopping event at Roosevelt Field Mall in Garden City, New York, U.S., November 23, 2018. REUTERS/Shannon Stapleton

While online sales were up substantially and traffic looked healthy at stores offering discounts, detailed numbers on brick-and-mortar holiday sales will not be available for several days.

“Overall, Black Friday doesn’t have the sense of urgency as in the past and feels more like a busy regular weekend day in many of the stores,” said Dana Telsey at Telsey Advisory Group.

“Many of the promotions were available for the past couple of weeks,” Telsey said. “We haven’t noticed desperation from any retailer.”

Shares of U.S. department stores Macy’s Inc, Kohl’s Corp, J.C. Penney Co Inc and Target Corp were all down between 1 and 3 percent on Friday and weighed on the broader S&P 500 retailing index, down 0.15 percent.

Investors are concerned that retail peaked in the second quarter and business will slow down as comparisons get tougher, said Brian Yarbrough, retail analyst with Edward Jones.

Victoria’s Secret owner L Brands, Walmart Inc and American Eagle Outfitters were some of the top gainers, rising between 0.5 to 3 percent.

STRONG ONLINE SALES

Shoppers spent $643 million online by 10 a.m. ET on Black Friday, with smartphone sales lifting overall online spending by 28 percent from a year ago, according to Adobe Analytics, which tracks transactions at 80 of the top 100 U.S. online retailers.

Online spending is on track to hit $6.4 billion on Friday, which is likely to either match or surpass last year’s Cyber Monday revenue of $6.6 billion, Adobe said. Online sales on Thanksgiving Day were up 28 percent at $3.7 billion.

The National Retail Federation forecast U.S. holiday retail sales in November and December will increase between 4.3 and 4.8 percent over 2017 for a total of $717.45 billion to $720.89 billion. That compares with an average annual increase of 3.9 percent over the past five years.

About 38 percent of American consumers plan to shop on Black Friday, and six in 10 expect to make at least half of their holiday purchases on that day, a Reuters/Ipsos poll showed last week.

DEAL FRENZY

Shoppers picked up big-ticket items such as TVs, Apple Inc, iPads and Watches at Target, while phones, toys, gaming consoles and cookware were top sellers at Walmart Inc.

Some of the deals:

– An H&M store in Manhattan offered 30 percent off everything in-store and online.

– Macy’s in Herald Square, Manhattan, sold a Coach designer wallet, originally $225, for $53.

– Midtown Comics was taking 25 percent off everything at its Manhattan locations until noon.

– An Eddie Bauer in Chicago offered 50 percent off all items.

– At a Chicago-area Pandora, which makes popular charm bracelets that can cost up to $1,000, jewelry was 35 percent off before 10 a.m. and 25 percent off for the remainder of the day.

– J Crew clothing was 50 percent off. Its site experienced some technical difficulties before coming back up.

– Walmart was selling a Google Home mini for $99.

– Buy one, get one free pajamas at Victoria’s Secret.

Charlotte Jackson, from London, come to New York with her mother for Black Friday shopping.

“Black Friday isn’t as big of a deal back home,” Jackson, a 27-year-old tax adviser, said while shopping for lingerie and pajamas at Victoria’s Secret.

MORE TOYS AT TARGET, JC PENNEY

Many retailers, reacting to the bankruptcy of the Toys ‘R’ Us chain, are catering to parents.

Target said in October it planned to dedicate nearly a quarter of a million square feet of new space to its toy business across 500 of its stores. The discount chain’s customers will also be able to shop for more than 2,500 new and exclusive toys, Mark Tritton, Target’s chief merchandising officer said.

“Toys ‘R’ Us had better quality for toys,” said Ashley Drew, 29, shopping for her 5-year-old daughter at a Los Angeles-area Walmart, next door to the empty shell of a Toys ‘R’ Us store.

Department store JC Penney Co Inc, known for its mid-priced apparel, has also made a push into toys.

Carolyn Pertette from Wilkinsburg, Pennsylvania, shopped in the early morning at the Waterfront Mall in Pittsburgh. She said she was upset about the closing of Toys ‘R’ Us.

“I’m concerned about where I’m going to get toys for the kids,” she said.

Shortly before 6 a.m. on Friday, shoppers were banging on the door at a Bath & Body Works in the Waterfront Mall in Pittsburgh, lining up for discounted candles, soaps, and lotion, while long lines formed at checkout counters in a Dick’s Sporting Goods store in the mall.

There was little evidence of the delirious shopper frenzy of Black Fridays from past years, in other parts of the country, especially the Northeast, where crowds were thin due to cold weather.

An Athleta clothing store in Tyson’s Corner, Virginia, provided hot chocolate with marshmallows to women in line for the dressing room.

(Additional reporting by Shannon Stapleton in Long Island, Lewis Krauskopf, Jennifer Ablan and Anna Irrera in New York, Lisa Baertlein in Los Angeles, Siddharth Cavale in Bangalore; Writing by Nick Zieminski; editing by Patrick Graham, Saumyadeb Chakrabarty and Bill Rigby)

Black Friday, Thanksgiving online sales climb to record high

By Richa Naidu

CHICAGO (Reuters) – Black Friday and Thanksgiving online sales in the United States surged to record highs as shoppers bagged deep discounts and bought more on their mobile devices, heralding a promising start to the key holiday season, according to retail analytics firms.

U.S. retailers raked in a record $7.9 billion in online sales on Black Friday and Thanksgiving, up 17.9 percent from a year ago, according to Adobe Analytics, which measures transactions at the largest 100 U.S. web retailers, on Saturday.

Adobe said Cyber Monday is expected to drive $6.6 billion in internet sales, which would make it the largest U.S. online shopping day in history.

In the run-up to the holiday weekend, traditional retailers invested heavily in improving their websites and bulking up delivery options, preempting a decline in visits to brick-and-mortar stores. Several chains tightened store inventories as well, to ward off any post-holiday liquidation that would weigh on profits.

TVs, laptops, toys and gaming consoles – particularly the PlayStation 4 – were among the most heavily discounted and the biggest sellers, according to retail analysts and consultants.

Commerce marketing firm Criteo said 40 percent of Black Friday online purchases were made on mobile phones, up from 29 percent last year.

No brick-and-mortar sales data for Thanksgiving or Black Friday was immediately available, but Reuters reporters and industry analysts noted anecdotal signs of muted activity – fewer cars in mall parking lots, shoppers leaving stores without purchases in hand.

Stores offered heavy discounts, creative gimmicks and free gifts to draw bargain hunters out of their homes, but some shoppers said they were just browsing the merchandise, reserving their cash for internet purchases. There was little evidence of the delirious shopper frenzy customary of Black Fridays from past years.

However, retail research firm ShopperTrak said store traffic fell less than 1 percent on Black Friday, bucking industry predictions of a sharper decline.

“There has been a significant amount of debate surrounding the shifting importance of brick-and-mortar retail,” Brian Field, ShopperTrak’s senior director of advisory services, said.

“The fact that shopper visits remained intact on Black Friday illustrates that physical retail is still highly relevant and when done right, it is profitable.”

The National Retail Federation (NRF), which had predicted strong holiday sales helped by rising consumer confidence, said on Friday that fair weather across much of the nation had also helped draw shoppers into stores.

The NRF, whose overall industry sales data is closely watched each year, is scheduled to release Thanksgiving, Black Friday and Cyber Monday sales numbers on Tuesday.

U.S. consumer confidence has been strengthening over this past year, due to a labor market that is churning out jobs, rising home prices and stock markets that are hovering at record highs.

(Reporting by Richa NaiduEditing by Marguerita Choy)

U.S. online sales surge, shoppers throng stores on Thanksgiving evening

By Richa Naidu and Nandita Bose

(Reuters) – U.S. shoppers had splurged more than $1.52 billion online by Thanksgiving evening, and more bargain hunters turned up at stores this year after two weak holiday seasons as retailers opened their doors early on the eve of Black Friday.

At the start of the holiday season consumer spending rose 16.8 percent year-over-year until 5 p.m. ET on Thursday, according to Adobe Analytics, which tracked 80 percent of online transactions at the top 100 U.S. retailers.

Surging online sales and a shift away from store shopping have thinned the crowds typically seen at stores on Thanksgiving evening and the day after, Black Friday, for the past two years. But a strong labor market, rising home prices and stock markets at record highs have improved shopper appetite this year.

Crowds at stores in many locations around the country were reported to be strong, according to analysts and retail consultants monitoring shopper traffic across the U.S.

“The turnout is clearly better than the last couple of years,” said Craig Johnson, president of Customer Growth Partners. “The parking lots are full and the outlet malls are busy.”

The retail consultancy has 20 members studying customer traffic in different parts of the country.

Moody’s retail analyst Charlie O’ Shea, who was in Bucks County, Pennsylvania, reported healthy traffic at local stores including consumer electronics chain Best Buy, clothing store Old Navy and retailer Kohl’s Corp.

“The weather is cooperating and people here are out,” he said.

The National Retail Federation is projecting that sales for November and December will rise 3.6 percent to 4 percent this year, versus a 4 percent increase last year. Non-store sales, which include online sales and those from kiosks, are expected to rise 11 percent-15 percent to about $140 billion.

In New Jersey, around 50 people lined up a Macy’s at the Westfield Garden State Plaza mall before it opened and around 200 people stood outside the Best Buy store, many to pick up their online orders.

“Me and my husband have a bigger place and we need a bigger TV for the living room,” said Jenipher Gomes, who bought a 50-inch Samsung TV at Best Buy for $399.99. Shopper Hammad Farooq said he waited at the store for an hour to shop for laptops and monitors.

In Chicago, shoppers appeared to be slightly less enthusiastic to emerge from their turkey slumber and crowds were thin along the city’s popular shopping destination, State Street.

“There’s a few more people than normal but I wouldn’t call this crowded at all,” Deloitte auditor Eugenia Liew said as she shopped at discount retailer Target. “I expected a lot more people.”

The holiday season spanning November and December is crucial for retailers because it can account for as much as 40 percent of annual sales. Retailers try to attract shoppers with deep discounts.

Average discounts ranged between 10 and 16 percent with the best deals online on Thanksgiving evening available for computers, sporting goods, apparel and video games, according to date from Adobe.

The number of customers shopping on their smartphones surged, accounting for 46 percent of the traffic on retail websites, while traffic from desktop and laptop computers declined 11 percent and nearly 6 percent respectively, according to the data.

(Reporting by Richa Naidu in Chicago and Nandita Bose in West Hartford, Connecticut; Additional reporting by Jenna Zucker in New Jersey; Editing by Susan Thomas)

S&P 500, Dow hit record highs on Black Friday

Traders work on the floor of the New York Stock Exchange (NYSE)

(Reuters) – The S&P 500 and the Dow opened at record intraday highs on Friday, helped by gains in healthcare and consumer staple stocks at the start of the crucial holiday shopping season.

The Dow Jones Industrial Average was up 47.01 points, or 0.25 percent, at 19,130.19. It hit a record of 19,138.51.

The S&P 500 was up 3.15 points, or 0.14 percent, at 2,207.87. It hit a record of 2,208.74.

The Nasdaq Composite was up 3.97 points, or 0.07 percent, at 5,384.64.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)

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